The rising problems of PEPs

Instability in the Middle East and Africa coupled with growing regulatory pressure on financial institutions has raised the profile of political risk for banks – in particular, the problems of dealing with politically exposed persons, or PEPs, as customers

Political risk involves the exposure of an institution to events in a country that are likely to affect its operations. The more countries in which the institution operates, the greater the political risk. The risk is multiplied where countries are unstable, or likely to be so. Banks have built global networks believing that political risk would decline as economic globalisation increased. Recent